Smartphone users love mobile banking
by Keris Lahiff
Online banking may not be a new invention but according to new research, demand is growing for it in the mobile space. One in four UK mobile internet users currently access their bank account information on their smartphone.
A study into mobile banking usage by US-based mobile specialists Antenna found 25 per cent of mobile internet users access mobile banking, the majority of which were in the 18 to 34 age bracket.
Of those who use mobile banking, 15 per cent access it through the bank’s website on their smartphone, and five per cent through apps, while six per cent use both equally. The small amount of app use is probably attributable to the fact only four of the 14 retail banks in UK offer a dedicated mobile banking app. Comparatively, in the US where most retail banks offer a mobile banking app, the use of banking apps and mobile websites is almost equal at 13 and 16 per cent respectively.
As the uptake of mobile-internet enabled devices soars, Antenna anticipates the mobile banking trend to continue and that those without a dedicated app platform will suffer a disadvantage in attracting new customers.
“Mobile banking has now taken hold,” says Antenna CEO Jim Hemmer. “The public clearly want to fit their banking chores around their lives... Banks need to acknowledge this by implementing holistic mobile banking strategies as soon as possible, and that means providing easy-to-use mobile web and apps across all device platforms.”
The most common activity performed through mobile banking was checking account balances (46 per cent), followed by viewing transaction history (31 per cent), and transferring money between accounts (27 per cent).
“Security remains the big issue for consumers, and that’s probably why they’re mostly using mobile banking services for basic tasks like checking their balances and finding ATMs,” says Hemmer. “Banks need to start offering full mobile banking services which allow their customers to make deposits, balance transfers and the like as soon as possible, because it’s those banks which build up mobile trust in the short-term who are going to gain the most when m-commerce becomes commonplace.”
Compared to usage in the UK, the US mobile banking market is relatively mature, with 40 per cent of US mobile internet consumers using mobile banking. This high usage could be due to the fact seven out of the top 10 US retail banks have both a mobile optimised website and a dedicated mobile banking app available.
“Organizations can establish a competitive advantage in the future by offering a full complement of mobile banking services that foster trust with consumers as they increasingly embrace m-commerce,” says Hemmer.
Published on: Tuesday, July 05, 2011